Budget Help

[ceeveg]

We bring in about $717/wk after taxes, etc.

Our bills currently for a family of two plus a 7mo DD:

Groceries: $150/wk
Baby items: $50/wk (I was unable to breastfeed, and we have to buy powdered formula - this also includes wipes, diapers, some solids, and any other needs)
Gas: $20/wk
Insurance: $758 approx (we pay out of pocket and have a maternity rider; this was our cheapest plan and we could not qualify for state assistance)
Student loans: $333.66
Phone Bill: $83 (we have a two-year contract cell plan)
Electric: $210 (higher than usual, though we've kept the thermostat steady at 68)
CC: $115
Internet: $64 through Comcast
Water: $33
Car Payment: $300
Mortgage: $941

We don't generally eat out (if we do, it's usually a quick burger), we don't have cable, we get most of our books, dvds, cds, and so forth through the local library.

I know we can cut back on groceries, and do need to learn to meal plan, but is there anything else to do? We checked into canceling our cell plan through Verizon, but would incur several penalty fees.

Thank you for any thoughts and ideas!! Cee :

[zacharysmom]

i had a thought can you put the cell phones on a hold if i recall correctly i was offered that in years past when i needed to reduce spending. it cant hurt to ask

[Right of Passage]

Ask for a hardship differement on your student loans, I've gotten one in the past and it helped.

Also see if you can get averaged monthly billing with your electric bill. Our gas/electric company offers it. We pay $50/month and that's it. Catch is if you use more than that at the end of the year you have to pay it, but there is a way to keep track and pay a little more if you end up using more.

The cancelation fees if you are early on in your contract would probably be less than what you will pay total for the 2 years. If that's not an option bump it down to the lowest plan. Try to bump down your internet plan if it's an option? What about WIC?

If you're not planning another baby or pregnant could you change your insurance to drop the maternity coverage? that would (at least in the quote I remember getting about 2 years ago) drop your spending $400/month. I'd maybe even consider (unless you or SO have ongoing medical issues) to bump you and your SO's plan to one that just covers emergencies, but keep LO's insurance. I see the doc maybe once a year if we had to pay out of pocket I would not buy insurance. there are many drs that will work with patients that don't have insurance, and there are many RX programs that will help if you need a RX.

[Denvergirlie]

So first of all I took your weekly incoming and outgoing and made them into monthly terms.

Net take home: $3107 a month ($717 x 52 months a year / 12 months)
**** Personally I would never figure a budget based on the above calculation, but instead pretend there is only 4 weeks in a month, thus based off of $2868 a month net income.

Mortage $941 -- Balance = $2166
Water $33 --- Balance = $2133
Electric $210 -- Balance = $1923
Car Gas $80 -- Balance = 1843
Insurance $758 -- Balance = $1085
Student Loan $334 -- Balanace = $751
Credit Card $115 -- Balance = $636
Internet $64 -- Balance =$572
Cell Phone $83 -- Balance = $489
Car paymnet $300 -- Balance = $189
Groceries $600 -- Balance = $-411
Baby Items $200 -- Balance = $-611

So from using your provided numbers you are short $611 a month. How is it that you've been making it now?
*** If you based off of the 4 week scenerio as mentioned above you are then -$850 short a month instead of -$611

I didn't see these categories in your budget:
Assuming property taxes and house insurance is included in the mortage payment?
What about car insurance?
Gifts
clothing
trash
haircuts
dr co-pays
any perscriptions?
eating out


Can you cancel internet at home? Sell the car? Refinance/ consolidate the student loans? Cancel the cell phones?

Cutting groceries and baby items alone is not going to put you back on firm footing, some other cuts will need to be made in other areas, or more income needs to come in.

Hopefully some others can chime in.

[Purple Sage]

How about a part time job to make up the difference? It wouldn't take long to earn an extra $200 a week.

[tinuviel_k]

I'd see if you can get out of that cell phone contract. Even if you have to take a $200 cancellation fee it would quickly be made up. $83 a month is a lot just for a phone.

Do you have a land-line? If not, check out your local phone company and see if they have a phone and DSL package. I pay about $68 a month for my phone, long distance AND high speed internet DSL. If your company had a similar plan you would be saving almost $70 a month for your phone and internet.
If you like the security of carrying a cell phone consider getting a prepaid plan. I have a cheap phone ($20) and I pay $100 for 1000 phone minutes that don't expire for a whole year (T-Mobile). The minutes roll over if you have extra at the end of the year and refill the phone.

How much is the balance of your credit card? Is there any way you or your husband could get a temporary part-time job and pay it off within a few months? That would clear up an extra $100+ a month.

How about that auto loan? Are you upside down in the loan? If not, I'd highly consider selling that car and getting a much cheaper one. $300 a month is a LOT to spend.

Are there ANY other insurance options? AAA has temporary emergency policies in many areas. Set up a free appointment with a AAA office in your area and see what they have available. they were super helpful for us when we needed that temporary emergency policy. If you could use it for even a year you would be able to save $600 a month, or $7200 in the course of one year. That is a LOT of money that could be used to pay down debt and reduce your monthly expenses.

How about a temporary student loan deferment or loan consolidation? i don't know what your consolidation options are, but I merged my three loans and got the interest rate down to 3%. The monthly payment went from $250 down to $80 a month.

Have you considered cloth diapering for your baby? You can get used cloth diapers in great shape right here at the MDC trading post and they will save you a TON of money in the long run. Then, if they are still in good shape, you can sell them hen your baby outgrows them. Likewise cloth wipes are a one-time investment and can be used for years. This will save you lots of money, too.

Your grocery bill can definitely be pared down, too. Use more beans and rice, get produce on sale, work your meals around what looks good price-wise. there are wonderful cookbooks that can help with this (try the More With Less Cookbook and such).

[SeekingJoy]

You have gotten great advice about car, insurance, student loan, etc.

It looks like health insurance is part of what is killing your budget. I know you said this was the cheapest plan. Is there anything you can do? Higher deductible? Catestrophic only on you and DH? Is this health and car?

What rate is your credit card and remaining balance? Can you call and ask for the rate to be lowered?

The $200 a month on baby stuff can be trimmed, although as pp pointed out it won't fix your budget woes. It is super easy to make babyfood. Just fork mush whatever you are having for dinner. Babyled weaning/feeding is better for your little one anyway. CDs and cloth baby wipes can be bought for what you are spending in one-two months.

DO any of these suggestions look doable?

[bobandjess99]

I agree....reduce the student loan payments somehow..defer, consolidate, use one of the new programs, etc. cut the internet..if you must have itk, you should be able to get it for no more than half what you are paying right now.
Cell phones..could also be cut entirely, even with penalties, but mayebh they';ll work with you to lower your plan?

Is that $300/month payment for a car your only vehicle? How much do you owe on it, how much is it worth? selling it might be a decent option, even if you take a loss. paying back a $2K deficit is better than a $15K remaining balance, you know?

get cheaper insurance, period. Dis the maternity rider..if you can't afford to live right now, you can't afford another baby, plus you have a 7 mo. Find cheap insurance for the family, this should save you the bulk of what you need..as much as $4-500 per month.

[ceeveg]

Thank you for all the advice. We are going to check into getting rid of the cell phones and seeing just what those penalties would be. We checked into a local calling plan, and were quoted $21.95/mo which would greatly help.

I will ask my husband about the student loans, as they are his. I believe they are consolidated, and are at a fairly low rate.

The car is our only car and we owe $15,000 -- I know!! I am afraid we'd take a big hit to sell or trade.

We talked about selling our house, but we've only been in it for two years, and an appraisal indicated we'd receive offers at $10,000 LESS than we paid for it given the current economy.

I'm nervous about not having the maternity rider, as my DD was a surprise, a wonderful surprise, but a surprise nonetheless. But it does make sense not to have that extra $250/mo when we can't afford to stay afloat!

I will look into a pt job. My husband works pretty late each day, and goes into work at 5:30 each morning. I've inquired about a few jobs, but I will see about working the weekends.

Thank you again!! Any more advice?

[mtm]

Your groceries are high, can you cut them at all? Do you coupon or meal plan?

[ceeveg]

I just applied to a management position within a daycare. If I cannot stay home any longer, at least perhaps I can find work where I can be close to my daughter? Sigh.

[dsaucone]

Do you pay the full premium on the insurance? Maybe consider the PT job to pay for insurance? Look for places with good health insurance plans. Your DD might qualify for state insurance? I know the income limits for kids are greater than adults. Kids under 2 have especially high income caps. Not sure how it works for you, but you might want to look into it again.

[Right of Passage]

Would homebirth be an option in the furtue? If so, it would still be cheaper to do that then pay for the insurance coverage you're getting.

Also you can make decent money babysitting in your home, advertise on craigslist, age ranges you are ok with, hours you're willing to work (nights and weekend are coveted if you can offer that)

[ceeveg]

I'm not sure homebirth would be an option in the future. I had so many difficulties in the last two months of my pregnancy, necessitating bed rest, constant testing for toxemia, etc. I wish though!

[SeekingJoy]

This my not be an option for you based on your personal beliefs, but two forms of birth control (pill+condoms, diaphram+pill, whatever) would less expensive than a maternity insurance rider.

[ceeveg]

My husband was unable to get our CC company to lower the payment (but they thanked us profusely for always paying on time and being such loyal customers ), but he was able to get one bill lowered by $60/month -- that's a start!! Thank you for the advice!

[AngelBee]

: for you